Examlex

Solved

You Borrow Money to Buy a House in 2006 at a Variable

question 60

Multiple Choice

You borrow money to buy a house in 2006 at a variable interest rate of 6.5%. Your interest rate is always 2% more than the rate of inflation. By 2009, the inflation rate has risen to 8.5%. Considering only your mortgage, is inflation good news or bad news for you?


Definitions:

Related Questions